Financial Glossary
Return on Assets (ROA)
Net income divided by total assets — measures how efficiently a company uses all its assets.
What Is Return on Assets (ROA)?
ROA shows how well a company turns its total asset base (including debt-funded assets) into profits. Unlike ROE, it's not inflated by leverage, making it a cleaner efficiency metric.
Formula
ROA = Net Income / Total AssetsWhy It Matters
A higher ROA means the company is generating more income with less investment. Asset-heavy industries (banks, utilities) naturally have lower ROA. Compare within the same industry for meaningful insights.
Typical Ranges: Varies by industry. Above 5% is generally good. Above 10% is excellent for most sectors.
Real Examples from Our Database
UECUranium Energy Corp
-0.1DVR 9.8
BEBloom Energy Corp
0.0DVR 9.6
OSCROscar Health Inc
-0.0DVR 9.6
FICOFair Isaac Corp
0.4DVR 9.5
ATATAtour Lifestyle Holdings Ltd
0.2DVR 9.5
Based on the latest data in our system. Values may change.
Related Terms
See This Metric in Action
Our DVR Score evaluates return on assets (roa) alongside 50+ other metrics to give you one clear picture.
Analyze Any Stock